As interest rates rise, a firm would
A. have increasing present value of expected earning.
B. have lower expected costs of investment.
C. be willing to pay less now to purchase the same number of future dollars.
D. be willing to pay more now to purchase the same number of future dollars.
Answer: C
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A constant marginal rate of substitution between two goods implies that they are
A) perfect complements. B) perfect substitutes. C) independent goods. D) unattainable.
Why does a monopoly firm not have a supply curve?
What will be an ideal response?
If the Fed wishes to raise the interest rate, it will
a. increase the money supply b. decrease the money supply c. increase money demand d. decrease money demand e. simply set a higher market interest rate
For most industrial nations, health-care costs have increased faster than the rate of inflation
a. True b. False Indicate whether the statement is true or false